Mears Group plc Recommends Final Dividend for the Year Ended December 31, 2015, Payable on July 7, 2016; Announces Consolidated Earnings Results for the Year Ended December 31, 2015; Provides Earnings Guidance for the 2016 and 2017
March 15, 2016 at 03:00 am EDT
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Mears Group plc announced consolidated earnings results for the year ended December 31, 2015. For the year, the company's sales revenue was £881,139,000 compared to £838,740,000 a year ago. Operating profit was £27,825,000 compared to £30,667,000 a year ago. Profit for the year before tax was £25,920,000 compared to £29,677,000 a year ago. Profit for the year from continuing operations was £22,088,000 or 20.10 pence per share diluted compared to £25,235,000 or 24.65 pence per share diluted a year ago. Profit attributable to owners of the parent was £12,874,000 or 12.52 pence per diluted share compared to £25,286,000 or 24.65 pence per diluted share a year ago. Net cash inflow from operating activities was £34,073,000 compared to £44,150,000 a year ago. Additions to property, plant and equipment was £4,297,000 compared to £3,962,000 a year ago. Additions to other intangible assets were £2,978,000 compared to £1,484,000 a year ago. Adjusted EBITDA was £45.0 million compared to £48.5 million reported a year ago. The average net debt over the year was £68.0 million, however, given the cash outflow of £17.4 million in respect of acquisitions occurred across the period, a truer indication of the Group's core debt at the end of the year is £80.0 million. Normalised diluted EPS was 27.94 pence against 32.20 pence a year ago. Care revenue was £146.0 million compared to £124.0 million a year ago.
For the 2016, the company's visibility of 96% of consensus forecast in revenue and in excess of 83% for 2017 indicating solid underlying growth for the coming year. The Group targets annual revenue growth of 5-10% per annum although over the last two years it has fallen short of this target. The improved revenue visibility gives a higher level of confidence in respect of 2016. The company will continue to target EBITDA to cash conversion in excess of 90%.
The Board of the company has recommended a final dividend of 7.90 pence per share which, when combined with the interim dividend, gives a total dividend for the year of 11.0 pence against 10.00 pence per share a 10% increase, reflecting the Board's confidence in the underlying performance of the Group. The dividend is payable, subject to shareholder approval at the company's annual general meeting on June 1, 2016, on July 7, 2016 to shareholders on the register on June 17, 2016.
Mears Group PLC is a United Kingdom-based provider of housing solutions for both the public and private sectors. The Company operates through three segments: Maintenance, Management, and Development. The Company offers a range of services, including Housing Maintenance, Housing with Care, Housing Management, House Building, Planned maintenance, Capital Works and Facilities Management. Housing maintenance includes repairs, refurbishment, fire safety and building maintenance services. Housing with Care services provides a range of schemes, including small buildings with a few properties and large sites. Housing Management service is specialized in community housing management services, including looking after tenancy, lease management and property maintenance. Planned maintenance includes jobs, such as installing central heating, fitting double glazing, kitchen and bathroom improvements, re-wiring, re-roofing, annual boiler and heating servicing.
Mears Group plc Recommends Final Dividend for the Year Ended December 31, 2015, Payable on July 7, 2016; Announces Consolidated Earnings Results for the Year Ended December 31, 2015; Provides Earnings Guidance for the 2016 and 2017